Correlation Between Whitecap Resources and Coelacanth Energy
Can any of the company-specific risk be diversified away by investing in both Whitecap Resources and Coelacanth Energy at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Whitecap Resources and Coelacanth Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Whitecap Resources and Coelacanth Energy, you can compare the effects of market volatilities on Whitecap Resources and Coelacanth Energy and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Whitecap Resources with a short position of Coelacanth Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Whitecap Resources and Coelacanth Energy.
Diversification Opportunities for Whitecap Resources and Coelacanth Energy
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Whitecap and Coelacanth is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Whitecap Resources and Coelacanth Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coelacanth Energy and Whitecap Resources is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Whitecap Resources are associated (or correlated) with Coelacanth Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coelacanth Energy has no effect on the direction of Whitecap Resources i.e., Whitecap Resources and Coelacanth Energy go up and down completely randomly.
Pair Corralation between Whitecap Resources and Coelacanth Energy
Assuming the 90 days horizon Whitecap Resources is expected to generate 0.74 times more return on investment than Coelacanth Energy. However, Whitecap Resources is 1.35 times less risky than Coelacanth Energy. It trades about 0.05 of its potential returns per unit of risk. Coelacanth Energy is currently generating about 0.01 per unit of risk. If you would invest 756.00 in Whitecap Resources on August 25, 2024 and sell it today you would earn a total of 10.00 from holding Whitecap Resources or generate 1.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Whitecap Resources vs. Coelacanth Energy
Performance |
| Timeline |
| Whitecap Resources |
| Coelacanth Energy |
Whitecap Resources and Coelacanth Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Whitecap Resources and Coelacanth Energy
The main advantage of trading using opposite Whitecap Resources and Coelacanth Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Whitecap Resources position performs unexpectedly, Coelacanth Energy can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Coelacanth Energy will offset losses from the drop in Coelacanth Energy's long position.| Whitecap Resources vs. Petroleo Brasileiro Petrobras | Whitecap Resources vs. Equinor ASA ADR | Whitecap Resources vs. Eni SpA ADR | Whitecap Resources vs. YPF Sociedad Anonima |
| Coelacanth Energy vs. Permian Resources | Coelacanth Energy vs. Devon Energy | Coelacanth Energy vs. EOG Resources | Coelacanth Energy vs. Coterra Energy |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stocks Directory module to find actively traded stocks across global markets.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Stocks Directory Find actively traded stocks across global markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |